Pre-approved house and land packages halving costly pre-construction period
LOS ANGELES: New pre-approved house and land packages have hit the market, shaving three months from the pre-construction period as a major builder aims to “move the needle on housing supply”.
Cameron Lade, group general manager of Summit Homes, said the new packages were practically slab-ready, recognising that customers were struggling with the high costs of rentals during long construction periods.
He said the 100 lots with pre-approved designs in the new Velocity program would typically spend up to 12 weeks in the final design stage, like other house and land packages.
But the program ensured any changes required to meet criteria, such as the seven-star energy rating, which could change with every five degree difference in block orientation, were made before the package was sold, so owners could get faster building certification.
The pre-arranged approvals and design tweaks were made to meet standards regarding noise attenuation, BAL ratings, thermal controls such as insulation, council landscaping requirements, the location of trees, window glazing and Medium Density Codes and National Construction Codes 2025. Even items such as the colour of the roof and the material used for floor coverings were pre-arranged ahead of sale.
“Where a lot is titled, it can reduce the pre-construction time by more than 50 per cent,” he said.
“We are also reducing the construction time from 12 to seven months so the whole thing can be done in 12 months, instead of 18 months.”
Failing to meet the 12-month build guarantee results in the builder paying the client liquidated damages, which is typically equivalent to the cost of rent.
Mr Lade said the new package changed the traditional way house and land packages were sold, which were typically customised by the purchaser.
The 100 lots in the new program only allow for interior customisation, such as colour scheme amendments, but no structural changes were allowed. He acknowledged it was a vast change to the process, but saved time, effort and money, avoiding growing “decision-fatigue” in the market.
Mr Lade said Summit was also building more homes on spec, with 60 lots currently being developed for eventual sale as a completed home.
“If we don’t evolve what we build and how we build it, we won’t move the needle on housing supply,” he said.
“We believe Velocity will help to speed up housing supply and in a way that is cost effective.”
